what I am thinking is dedicated gaming console may do no better job than ipad 3

I have a xbox360 which does a better job in terms of deep and big games. Such as Mass Effect and COD, IOS has no game could compete with them for now.
But it's just for now.
Let's take a look at games like Waking Mars on IOS, it has a several hours gameplay and it's IOS exclusive now, this game is no worse than same genre for gaming consoles, do you agree? So we could tell that easily IOS not only could be good in the field of tiny games.
And how about medium sized games like Scribblenauts or Crazy Hedgy? They're fun and addicted, does xbox or ps3 gets superior games than these? not really, touch control is just perfect for scribblenauts.
For AAA games are still absent, IOS needs a control pad and power of ipad 3 in the future.
Small memory storage is not a problem, i dunno why, but the tps game shadowgun only takes no more than 300 MB.
so a 3GB game could be 9 times bigger than shadowgun, it's enough for a big game.
and we can also expect ninetendo-style games which no needs big storage space.

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But the software will never rise up to consistently meet the potential of the hardware. It doesnt matter how powerful the iPad becomes, there will never be a full-fledged, no-compromises Call of Duty game on the AppStore. Or Halo, or Gears of War, or God of War, or dozens of other AAA gaming franchises. Call of Duty BlackOps 2 for home consoles and the PC will have the production values and the budget of a Hollywood summer blockbuster movie. Nobody will ever spend that much money to develop a portable game. Not even on a Vita or 3DS game, much less on an iOS game.

I wish it would happen, because I love handheld gaming much more than console gaming, but I don't think it will ever compete with the epic nature of console gaming. It will always occur on a lesser scale. I'm interested to see how much gets poured in the Vita version of COD. The effort that gets put into the development of that game might tell the tale when it comes to how big portable games can get. Will there be some of the same massive set pieces. The epic nature of Uncharted got downsized for the Vita. With COD, I sorta expect the same. A more modest affair.

* Apple has no first party game developers. Microsoft, Sony and Nintendo fiercely compete in the game industry by having exclusive content on their platforms. Halo is probably the best example of an IP that drove platform success. In order for the iPad to diminish the success of other game platforms and compete as a serious contender, they would need to better (let alone equal, let alone come close to) the exclusive offerings found elsewhere.

* Microsoft, Sony, and Nintendo run closed platforms. The reason a closed platform is good for developers is that content control allows for controlled marketing strategies to get big returns on big productions. As one kind of crude example; if the 360 was an open platform, Halo's sales would be partly diluted by a dozen other FPS titles launching on the same day or within a week/month of release (of mostly horrible quality) that less savvy gamers would most likely be distracted by. For a better understanding of this line of thinking adopted by the current powers that be, look into the videogame crash a few decades ago on wikipedia.

* the iOS platform's success is based on casual gamers. AAA titles can't yet reliably find a big enough audience on iOS to rival returns offered by the dedicated consoles. This is also an obvious catch 22 going forwards.

* iOS inputs are limited. Touch screen is absolutely perfect for lots of games, while for other types, cripplingly inadequate. For me this is even totally forgivable for a device that's actually my phone, always with me, really convenient, etc. I don't mind struggling with a virtual DPAD now and then. But it's not really enough for me as my one-stop dedicated gaming machine. Doesn't cut it for FPS/TPS/Many action games for me, and there's no getting around it.

Another major limitation of iOS devices right now is memory and storage. Consoles have the luxury of much greater onboard storage, and in the case of the new iPad, games will have to be larger just to handle the greater screen resolution, etc. Unless Apple has new features to add to iCloud like live load streaming or greatly increases the storage specs of future iOS hardware, I don't see how the AAA games one usually associates with consoles will ever be beaten on iOS hardware.

That doesn't mean that some genres of games wouldn't be just as good, of course, and just as the Wii introduced a new gaming paradigm via a novel control mechanism, iOS devices could do the same - in theory.

I dont compare console to iOS gaming, i love portable gaming so for me iOS gaming is superb, i cant take an X-Box with me on a train etc !

But i think a lot of people are very impressed/surprised at how good iOS gaming actually is, i think a lot of people expect crappy cellphone type games or non stop Angry Bird clones (sadly there are a lot of these), i show my friends some of the variety of games on my ipod/ipad and they cant believe it. iOS gaming has casual games, short games, huge epic games, huge range.

Console gaming is great but i personally get so much more enjoyment playing games on iOS, just love what it can do. But console/iOS gaming are two very different things and cant see them competing for many years yet

I'm currently selling my XBox 360 (plus ION Premium Drums) and the Wii because I did not use them since 02-2011. They will be replaced with the HDMI connector for my iPhone, which allows me to play Real Racing 2 and the Gameprom Pinballs with the iPhone as a remote and Galaxy on Fire with the mirroring mode. And all other games with the mirroring mode. Most games which rely on a touch interface where you don't have to look on the screen will be playable fine, like all pinball games or Rolando or Super Monkeyball. And RR even offers 1080p output.

But, I'm not the typical hardcore console gamer. I'm 34, work with computers all day and simply don't have the time to play 50+ hour games at home. The medium sized iPhone games fit better, cost less and I can play them whenever I want.

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